Key facts
- Nearly 1,700 UK investors are suing Binance and founder Changpeng Zhao for approximately $200 million.
- The lawsuit alleges Binance offered crypto derivatives without regulatory approval, breaching the Financial Services and Markets Act 2000.
- These products were allegedly offered after the UK's Financial Conduct Authority banned them for retail customers in January 2021.
- One affected customer reportedly lost over $132,000 from Binance's derivatives offerings.
- Binance stated it will defend itself against the claims and remains committed to its obligations.
Nearly 1,700 UK investors are suing cryptocurrency exchange Binance and its founder, Changpeng Zhao, for approximately $200 million (£150 million). The lawsuit, filed in the London High Court, alleges that Binance offered and sold risky crypto derivatives, including leverage tokens and futures contracts, without regulatory approval. The law firm representing the investors, KP Law, stated that these offerings breached the Financial Services and Markets Act 2000 and continued after the Financial Conduct Authority (FCA) banned such products for retail customers in January 2021. Binance has indicated it will defend itself against the claims, emphasizing its commitment to user obligations and legal compliance. This legal action adds to Binance's ongoing regulatory challenges, including its recent withdrawal of a MiCA license application in Greece and previous allegations of facilitating transactions tied to a sanctioned Iranian financier. One affected customer, Tomas Sutas, reportedly lost over $132,000 from Binance's derivatives products.